UnitedHealth expects 2019 revenues to exceed $243B

UnitedHealthcare
UnitedHealth's revenues will reach $226 billion in 2018, the company disclosed on Monday ahead of its investor conference. (UnitedHealth Group)

The nation’s largest health insurer expects revenues to reach as much as $245 billion in 2019.

UnitedHealth Group's 2018 revenues will reach $226 billion in 2018, the company disclosed on Monday ahead of its investor conference slated to kick off on Tuesday. Net earnings will reach $12.10 per share.

That’s up from more than $201 billion in revenues during 2017, when earnings per share reached $10.72. Since 2015, the company’s revenues have increased by 44% and earnings per share have doubled.

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That growth is expected to continue into 2019. The company projects its annual revenues will fall between $243 billion and $245 billion next year, with net earnings per share of $13.70 to $14.00.

Cash flow from operations is expected to land between $17.3 billion and $17.8 billion, giving the company the latitude to maintain its acquisition spree. 

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The guidance comes as the insurer faces new competition from CVS-Aetna and Cigna-Express Scripts, both of which are expected to close by the end of the year. Based on 2016 data, CVS-Aetna will be equipped with more than $220 million in revenue. Cigna-Express Scripts pulled in almost $150 billion combined last year.

UnitedHealth plans to offer a more detailed discussion of the company’s strategy and outlook during Tuesday’s investor conference. Investors will be focused on membership gains in Medicare Advantage, Optum’s competitive sustainability and how the company is prepared to navigate competition from new technology giants like Amazon, Google and Apple.

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